Lars Hedenborg cracked the code in real estate and sold his company for millions. In today’s episode, Chris Craddock talks with Lars about his business strategy to make over seven figures and never work a normal work week.
- Hiring others for the very small tasks of your business
- The importance of your real estate license
- A new strategy to transition from agent to investor
- How to make a million dollars in referral fees
Making Seven Figures Working 20 Hours Weekly Ft. Lars Hedenborg
I am excited because I know everybody is thinking, “How do I make the next dollar? How do I make the next transaction happen?” What I am pumped about is that we are going to keep going further down the rabbit hole with more people that know and spend their time in leverage. My friend has built a business.
He is one of the unicorns in the real estate industry. He has sold his real estate business. This was a retail business, not a wholesaling business, but he sold his business for over $1 million. He got to a point where he made seven figures in his business. What was it? Was it an hour a week? Was that what you were working about in that?
I wish it was an hour a week but it was less than a day a week.
What we are going to look at is how do you build a business and not a job? I do not care whether you make $1 million a year. If you have to be present for it, it is just a high-paying job. How do you build a business and not have another job for yourself? We are going to get one of the experts in the world to join us here and share what they think. If you want to grow, one of the phrases I remember hearing is, “Start by doing what people that you want to be like do, and you need to learn to think how these people think.”
We are going to learn how we do some of the things that Lars is doing, but also get behind the curtain here and find out how Lars thinks so that you can grow and scale your business. What are the principles here to move into a seven-figure business owner? With that said, Lars, tell us a little bit more about your story. Sorry I revealed the ending, but tell us the rest of your story.
I am happy to be here. I will be the first to admit I have made all the mistakes you could possibly make in business. One of the things I do a little differently than most is I go down the path of leverage in my real estate business. I got into the residential side and grind seven days a week, evenings and weekends. It doesn’t matter what you do. If you do not pick the things to do that make you the most amount of money in the least amount of time, you are going to be out of bounds in the other areas of your life that matter more than making money if we are being honest with ourselves.
I doubt what you said there. It is important. It is the most amount of money in the least amount of time. Most of us, if you are honest, we are like a bullet trying to be shot and go forward with blinders on. I do not want you to miss that because it glosses over that. That is one of the big keys to how he is thinking.
I thought you were going to pick up on that. There is more to life than money, but you picked up on that.
There is more to life than money. That is true. Even though I am joking about it, I do believe that. Zig Ziglar says, “Do not work for the things that money can buy, but what is more important is the things that you love that money cannot buy.” There we go. Lars is right on. Both of those things are great. Now back to you.
If you want to grow, start by doing what people you want to be like do, and learn to think how these people think.
It is this recurring thing. I figured out how to sell thousands of homes in the retail space. I got that to a point where it was running smoothly. I shifted into the coaching space and built out the tools and systems to help others to do the same. Hundreds of folks have been through Real Estate B-School, and they are building businesses that run without them, grinding at every little bit every day.
We are building out something in terms of leverage that I have never experienced before. We will get into that in a little bit, but when I think about this, more money, more freedom, more impact, that has been my mantra. Money is cool. It solves some things. You could do good with it. I do not think it ruins you. It accentuates who you are before you make it, but it is the freedom that it affords, your time freedom, location freedom, and the freedom to do what you want when you want with who you want and ultimately more impact.
The grid that I use consistently, and this is every 90 days, I write down all of the things that I spend my time on, and I put them into different buckets. It is a quadrant. One of the axis is passion. The thing that I have a high passion for or low passion for and it is pay. Things that pay a lot of money and things that do not pay a lot of money. You could probably think in your business, Chris, maybe there are being a belly-to-belly with a potential home seller. That may be your thing, where you are lit up doing that. It is high passion, high pay.
Below passion, low pay is probably putting out yellow and black signs to generate calls, whatever you guys do to generate leads, or where you could hire somebody for $9 an hour that has a pickup truck to do those things. There are guys that try to do what you do that are still doing the low-dollar productive activities that they do not even like.
It is being consistent with constantly looking at your business and where you can make the most amount of money. Hopefully, doing things that you are good at that you enjoy and being ruthless about eliminating the things that do not make you a lot of money because you are taking time away from your self-care, family, or the things that matter more than making money.
Talking about the signs is important here. Let’s go next level on that. I want to be completely vulnerable and honest about one of the areas where I was new to the investor game. I was flipping houses. We were making good money and a couple of hundred thousand in the first few months. We were crushing it.
One of my business partners, I asked him to put a lockbox on the house. He said, “It was not worth my time.” Honestly, where I came from, where I got little financial return on my money, I thought that he was being ridiculous. I hated it. I could not believe that he was saying, “It is not worth my time.” That was foreign to me because I came from the ministry world. I would stay late and stack chairs. I am like, “You are saying you are too good to do that.”
What I did not understand was in the business world, it was not about not being humble. It was about understanding the value of his time, and we argued a little bit. Finally, I got it. He was like, “If I go take a lockbox for two hours, we could pay somebody $40 or $30 to do that. In two hours, could I find another deal? Could I help move the deals along fast that we are doing? Could I make more than $30 for an organization in two hours?” I was like, “We are making a lot of money. Your time is worth more than that.” I realized that as long as I spend time doing the things that are below that, you will never make the money that you need to make. That is a powerful lesson.
I even went one step further than saying that I wanted to make more money in less time. The game I have been playing in business is, “How can I make a seven-figure income working 1,000 hours or less per year?” A 40-hour workweek is a 2,000-hour work year. I wanted to work about twenty hours a week on average and still make a seven-figure income.
If you do the simple math on $1 million divided by 1,000 hours, that is $1,000 an hour. When you look at the lens of what I am touching on now, it is worth potentially $1,000 an hour. Is the time that we are spending together doing this is it worth? Can we impact enough lives where we can create enough opportunities to make the time that we are spending worth this time?
The real estate agent example, if you follow around a busy real estate agent, they are running personal and business errands for about 3 to 4 hours a day. Whether they were a lockbox here, sign here, taking a photo, dropping off brochures, and getting a due diligence check from an attorney. It is a ridiculous amount of waste that goes into the business. That goes for any business.
You got to be honest with yourself because some of those things like jumping in your car, driving by Starbucks on your way to the attorney’s office, or to do the signs are nice and low pressure. Digging into the things that are harder and that take higher skill. There is more on the line when you are developing new business. That is where the money is made. That is where I spent all my time in those early days, getting the business to get momentum. I can afford to buy the leverage and buy back my time.
That is crazy running errands most of the day. All you guys that are doing fix and flip stuff and listing your own properties. He may have cut you to the heart because many of us get caught doing that. There is a reason why the Pareto Principle, the 80/20 rule, exists. We know that we spend more time doing the things that are not important and are not going to get us to 20% or 80% results.
With that said, let’s transition here, Lars. One of the things that we are working on now is one of the ways that people can get bigger and better results for what they are doing and what is happening in the world. I have been talking about this on this show that there are five states that are now requiring licensure. By the time this airs, there may be another one for people that wholesale.
What I mean by that is they are saying, “You are no longer selling a contract that you are doing real estate activities.” It means you need to be a licensed real estate agent to sell contracts in these five states. One of the states, Michigan, does not enforce it now, but one day they will. You do not want to be the person they decide to enforce it on.
With that said, we need to get out ahead of this because the worst thing that could happen is your state passes a law, and you are stuck. You are out of business until you get a real estate license if that happens to you. We want to get out ahead of this and also build a tribe and a community for Wholesaling Inc for all the folks to be able to mastermind and grow together.
I have decided to move my coaching platform, REI Revive, where I teach people how to monetize their dead leads. It was on with one of my guys, to who I have sent over $60,000 every month in referral fees to my friend. I was on a call with him, but he is making over almost three-quarters of $1 million in leads that he was throwing away. I am giving that away now for free for anybody that comes into our funnel.
Lars, let’s get back to leverage. Why did you decide to leave a business where you were making and not grossing but netting over $1 million a year? Why did you decide to leave that business and start spending your time where you do not get into something without thinking about it? You are thoughtful about how you spend your time. Why did you decide to start spending your time on the eXp opportunity?
If you do not pick the things to do that make you the most money in the least amount of time, you will be out of bounds in the other areas of your life that matter more than making money.
The way I view eXp and specifically what you guys are building in eXp. I think the future will reveal the fact that what you guys are building and you mentioned tribe and community. That is something that we would need to spend a little bit more time on, but I view eXp as a platform. There are different ways to go to different platforms.
You can plug your business into where there is not typically a pot of gold at the end of these rainbows and these businesses, whether you are flipping, wholesaling, you are on the residential side, or you want to convert from an agent to more of an agent investor type, and maybe you can touch on that a little bit. It is a more elegant platform. I have my family on the health insurance that eXp provides. I will save about $12,000 in 2022 because of that one benefit. Our tech stack, the training that we provide, and the best agents in the company are providing the training.
That is in addition to Real Estate B-School, which is another value proposition in terms of systems, tools, and leverage. There are five ways to earn stock. Doing what you are doing. You are going to be forced into this. You guys want to get ahead of this curve that is coming and this wave of forced licensure. You can opt-in to this thing and start building ahead of others having to do it.
Ultimately, there is a way to build out a residual income stream at eXp on our platform by networking, which is what investors do anyway. You guys are part of these organizations, and there is going to be this massive influx of agent investors. EXp and the group you are building, Chris, is becoming a super investor agent-friendly company.
My quick story is that in 2022, I will make close to $1 million in residual income on referral fees of transactions that are happening with folks that have come into my world. That is an additional income stream in addition to the other things that I have got going on. To me, when I look at my journey, being a solo agent, building a real estate team, doing coaching and leveraging out of that business, and now providing the value proposition that on top of what you are providing, there is nothing more leveraged that I have done at all. You can operate in multiple states and can invite investor agents in different states. It is a pretty cool platform.
Reading the fact that you are able to make that money without any overhead is something that I hope everybody is reading and turns their head. The other thing that is important is I know a lot of you guys are out there. If maybe you are single and you do not need health insurance now and all of the other pieces, but if you decide you want to have a family, or you do have a family, and you want to go full time, but you were like, “How am I going to get around healthcare?”
This is one of these things, and by partnering with us here at eXp and Wholesaling Inc, you will be able to get access to healthcare for your family. It is a cool opportunity here that you will have access to. With my program, REI Revive, you can monetize those leads if you decide you want to build out a retail side of your business.
One of the folks that I coach and help is averaging eighteen retail deals a month, and it is being completely fed by the distressed seller leads that they couldn’t close. They wanted close to retail value. They could not wholesale those deals as they turned them into eighteen deals every single month. That is a powerful opportunity that you have to see where the world is coming from.
It used to be the investors were on one side, agents were on another, and now there is a convergence of this agent and investor coming together. This is cool. Lars, one last thing Real Estate B-School. I know anybody that comes into our tribe at Wholesaling Inc gets access to this for free. Can you tell us what Real Estate B-School is so they can get an idea?
I want to touch on one thing real quick that you said. In the residential world, in the world that I have mainly lived in, having excess seller leads is not even a thing. In the market we are in, even as the market is pivoting here a little bit, nobody is doing what Chris said. You glossed over it like it was not a big deal that they are doing twenty extra deals per month on the residential. That is a bolt-on to their existing investor business.
That is an unbelievable opportunity that you are talking about. Real Estate B-School, if you are going to pivot and for any business, 50% of the tools and systems in there, it has straight up leverage tools to run any business more efficiently, where you are clear about what you can and cannot touch in the business. You are more high pay, high passion activities more consistently. You can dictate what you want in your business, but you can use all of it.
It is normally $22,000 a year to be part of Real Estate B-School. The B is for Business school. It is the MBA of building a residential real estate business, but it all applies to any business for the most part. You can take Chris’s REI Revive and use those excess leads to generate an engine where you can monetize all the leads that you were throwing away.
If you have been in this business at all, you have done any marketing, and you get twenty people that I like to call being hot if they want to sell within the next six months, so if you get 20 hot leads and 16 of them are not going to want anything to do with your offer that would be at a wholesale price or a fix and flip price, they are going to want close to retail.
The other four, you will probably lock up 1, and 3 of them are going to go with somebody. They will pay them more as an investor that is not going to make any money on it, so you got 19 out of the 20 leads. Somebody is going to make money with it. It is not going to be you unless you are able to figure out how to monetize that, which is why eighteen deals a month is what my friends over there that we are coaching are able to do. This is their first calendar year with a residential team.
I am telling you what Lars said, “You may not get this, but in the retail world, having seller leads is a massive upside.” Being able to take what we are doing here, take Real Estate B-School, and add this on. Plus, the other coaches at Wholesaling Inc were all here to add value to everybody in our tribe and community. This is the big launch, the big thing that we have been talking about, and what wholesaling Inc is coming out with and going to run with Lars. Is there anything else you want to share that we should talk about before we start wrapping up here?
We are throwing a lot at you. It is the opportunities. You guys are investors to partner with Chris and Wholesaling Inc and are able to build a completely different income pillar but to layer on the Real Estate B School stuff. On the residual income opportunity, that entire platform is a whole additional income pillar that is completely built out and leverageable.
We have not talked about that, but the training is built out of the systems and the tools. We build out funnels for folks that want to focus on that part of it. Once you take action, Chris will tell you what that looks like. We are going to layout the different income pillars, and you pick and choose where you want to focus your efforts to get into your sweet spot and make more money, less time, less stress, more impact, more time with your family, and all that good stuff.
Lars, I will have you back on in here shortly to talk through the revenue share model where you are going to make $1 million a year and not sell one house and get out in front of that. That is part of the opportunity. We do not have time to get all the way into that now. I did want to let everybody know what is coming, what was out there, and what are some of the values here.
More money, more freedom, more impact.
We are going to do another follow-up episode where we talk about how Lars make $1 million a year without selling a house through this opportunity. We want to lead with how you will grow your business first because that is how you put food on the table. That is how you are going to become the person you want to be.
I keep looking at your poster behind you, time, money, and freedom. That is the golden use in real estate. Usually, people give up a couple of those to get the third one and be able to go after time, money, and freedom. There is a lot of power in that. With that said, if you guys want to partner with us, me, and the whole team, I know you guys read the blog post. We are running with this. This is Wholesaling Inc. This is what we are doing.
If you want to partner with us, you can go to ChrisCraddock.com/eXp and that will take you right to us. It will set up a way for us to get connected to us, to walk you through, and help you get moved over. If you are an agent, we can get you moved over right away and share with you how we can help you do a whole heck of a lot more deals virtually overnight.
If you are not an agent, we will help you to a place where you can get licensed, come over and start monetizing all those dead deals that you are throwing in the trash like my friend, Brad, who was throwing away these deals and now bringing in over $60,000 a month. Can you imagine throwing away $60,000 every month? It is crazy to me, but that is what he was doing. Now he is monetizing those. We will teach you guys how to do that.
This is the path to freedom, leverage, and growing fast. We would love to run with you. Guys, go to Wholesaling Inc or ChrisCraddock.com/eXp that will take you right where you need to be, and we will get you set up, signed up, and moving forward. If I can do anything for you, feel free to reach out to me on Instagram @CraddRock. Lars, how can people reach out to you?
If you guys have any questions about this, I am going to be a part of the intake process in ChrisCraddock.com/eXp, but Lars@RealEstateBSchool.com. Check that email. If you are interested to learn more about this opportunity, that is probably the easiest way to get in touch with me.
Let’s run together for seven figures. Let’s do it.
- Lars Hedenborg
- REI Revive
- eXp Realty
- @CraddRock – Instagram
- Be sure to join the Wholesaling Inc Facebook group
About Chris Craddock
A nationally certified Life Coach with a Doctorate in Leadership, Chris Craddock is the driving force behind REI Revive, the host of the Uncommon Real Estate Podcast, a Realtor, and an entrepreneur who runs multiple successful businesses in the Washington DC Metro area (and Richmond, VA). Chris is a consistent NVAR multi-million dollar producer who produces over $4 Million in commission each year.
In 2020, his team, The Redux Group, was #20 in all of Keller Williams and sold just under $160 million in volume. Chris has been married for 20 years and is the proud father to six beautiful children.